Krefeld's 2026 Budget: Between Deficits, Investments, and Reform Debates

The 2026 Budget: A Deficit, but Not Deficit Management

In April 2026, the city of Krefeld once again addressed the budget for the current year. Although a deficit of approximately 170 million euros is expected – a figure significantly higher than the average deficits of the years 2024–2028 (around 31 million euros) – the city's financial situation is not described as critical. The financial officers emphasize that the city remains capable of action, even though deficits are accumulating over several years.

The financial planning also takes into account the rising interest burdens from debt. The city currently has total loan obligations of 545 million euros, with the interest burden expected to exceed 19 million euros by 2028. At the same time, the city is striving to diversify its creditors and ensure transparency in debt management.

Property Tax Debates: Legal Certainty Over Fiscal Stability

Another focus of the session was property tax policy. Following several legal rulings against differentiated tax rates for residential and non-residential land, the city of Krefeld has decided to implement a uniform tax rate of 680% for property tax B starting in 2026. This step is less about fiscal considerations and more about ensuring legal certainty.

The decision was sharply criticized by several political groups, particularly the AfD, which called for a suspension of the tax rate adjustment and an overall reduction in tax rates. At the same time, the administration argued that the return to a uniform tax rate is also fiscally advantageous, as legal uncertainty in the past had already led to revenue losses in the millions.

Investments: Economic Efficiency and Planning Security in Focus

Investment planning remains a challenge for the city of Krefeld. According to session reports, investments are only used to about 27% of the planned amounts. This is partly due to a lack of strategic goals and inadequate investment planning. The city has therefore committed to establishing a centralized grant management system and setting up a reporting system that makes the economic efficiency of projects transparent.

An example of a current investment is the renovation of the Uerdinger Schwimmverein 08 e.V., for which 880,000 euros will be allocated from the sports budget. At the same time, the city continues to finance investments with external grants, such as the photovoltaic installation of a tennis club or the renovation of a community swimming pool.

The Path to Climate Neutrality: Financing Models in Testing

Krefeld has set itself the goal of becoming climate-neutral by 2035. To achieve this goal, the funds for the building sector need to be doubled. The city is currently testing energy-saving contracting as a financing model, in which investors finance energy savings and later refinance them through earnings.

At the same time, the city continues to implement its climate protection concepts such as "KrefeldKlima 2030" and "KrefeldKlimaNeutral 2035." However, there is still a lack of a city-wide sustainability strategy, which critics see as a gap in long-term planning.

Conclusion: Between Deficits and Reforms

The 2026 budget is a reflection of the challenges Krefeld as a city is facing: rising deficits, legal uncertainties in tax policy, and the need to plan investments economically and strategically. At the same time, it also shows that the city is capable of advancing reforms – whether in tax policy or in climate protection financing.

The coming months will show whether the plans for budget consolidation and the reform of financial administration can be successfully implemented. A course correction is not in sight, yet the debates show that the financial future of Krefeld has not become a political given.